What defines a skip person among nonlineal descendants in terms of age relationship to the transferor?

A skip person, in the context of estate planning and gift taxation, refers to an individual who is two or more generations removed from the transferor. In terms of age relationship, a skip person is typically defined as someone who is more than 37.5 years younger than the transferor. This age threshold is significant because the IRS uses it to determine whether a transfer of assets or income is subject to Generation-Skipping Transfer (GST) tax.

When considering the implications of making large gifts or transfers under estate laws, understanding the generational distance and the age difference from the transferor is crucial. A skip person does not fall within the immediate line of descent, which is why their age relationship exceeds that of typical descendants or direct heirs. This definition helps ensure that wealth is not passed down without tax consequences across generations, hence the specific age cut-off of more than 37.5 years is a regulatory measure established by tax laws to prevent avoidance of transfer taxes by skipping generations entirely.